If at this moment you have decided to wash your hands of the stock market and never step into it again, then congratulations on being able to exit in time and stay away from this risky field.

Because in the past article "The Stock Market is Similar to a Casino, with Huge Risks, Like a Beast Lurking in the Dark, Ready to Devour People at Any Time," I have already explained the risks of the stock market very clearly, and the stock market is even more unpredictable than a casino.

But if you still have a grudge and want to take a chance in the stock market, then this article is worth reading carefully.

When trading stocks, the first thing we need to do is to find out all the previous operations that led to losses and deeply reflect on the reasons for the losses.

For example, why did you buy high?

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It may be due to the encouragement of various news, media including financial anchors, or it may be due to the guidance of policy documents, or it may be due to the company's release of good news, which makes us mistakenly think that the future is bright, and then we buy high.

If you are losing money because of the news and buying high, then you should try to block this kind of information in the future, simplify the complex, focus on the factors that truly affect profits and losses, and not be disturbed by the outside world.

For example, why did you chase the rise and kill the fall and get trapped?

Seeing that other stocks are rising well, but the stocks you hold are still, so you can't help but cut the meat to chase the rise of other stocks, and in the end, you are often "trapped" as soon as you buy.Additionally, why is it that one fails to understand the concept of taking profits, continuously adding to their positions, leading to increasingly higher costs?

When stocks rise, there is always a mindset of wanting to earn more, persistently increasing one's stakes, yet failing to grasp the importance of timely stop-losses and selling.

When the market trend shifts, one can only helplessly watch as profits diminish or even turn into losses.

Moreover, during a continuous market downturn, there is often a belief that the bottom has been reached, leading to premature attempts to bottom-fish, which results in catching the market at mid-level. By the time the true bottom arrives, there might not be sufficient funds left to average down.

Lastly, if the funds used are not idle money but borrowed capital, one falls into a dilemma of being anxious whether the market rises or falls. If the market rises, there is an urge to sell off a portion quickly, only to find that it was sold too early, and then, seeing the market continue to rise, one chases back in, incurring losses once again.

Sometimes, even when we are acutely aware of these situations that lead to losses, we still repeat the same mistakes over and over again.

This usually happens because we focus solely on short-term gains, much like knowing that smoking is harmful to health but disregarding it. In the short term, one might feel fortunate to gain some comfort and benefits with a sense of luck, yet this approach fails to achieve stable and lasting success.

For instance, in the process of chasing rising prices and selling off in panic, one might occasionally make money by luck once or twice, but in the long run, this strategy is incorrect.

We must recognize the harm of these erroneous practices and correct them. Only by doing so can we possibly achieve profitability in the stock market.Note: The market carries risks, and investment should be approached with caution.